SUNNYVALE, Calif.–(BUSINESS WIRE)–July 10, 2006–MoSys, Inc.
(Nasdaq:MOSY), the industry’s leading provider of high-density
system-on-chip (SoC) embedded memory intellectual property (IP), today
announced that it has adjusted guidance for the second quarter ended
June 30, 2006.

“During the second quarter, we concluded negotiations on a large
65nm technology license and royalty agreement with a major integrated
device manufacturer (IDM). However, we now expect to sign the
agreement this month and recognize the license fee as revenue in the
third quarter of 2006. It is important to note that MoSys would have
exceeded the high end of its guidance for the second quarter if the
revenue from this agreement had been recognized in the quarter, as
planned. As a result of this deferral, we now expect total revenue for
the second quarter of 2006 to be approximately $2.3 million,” stated
Chet Silvestri, CEO of MoSys, Inc. “While we are disappointed that we
did not complete our agreement with this IDM prior to the end of the
second quarter, we are pleased that they have decided to move forward
with MoSys’ technology, as we offer the most scalable and
cost-effective solution for advanced geometries. The industry’s
movement to 65nm is continuing at a rapid pace and we are experiencing
strong interest in our 65nm licensing program. We will provide more
detailed guidance for the third quarter during our second quarter 2006
earnings release conference call.”

MoSys plans to release second quarter 2006 financial results on
Wednesday, August 2, 2006 after the market closes. The earnings call
will be held at 1:30 p.m. PST.

MoSys’ original guidance for the second quarter of 2006 was
published in the Company’s first quarter 2006 financial results
release dated May 2, 2006. This release may be found on the Investor
Relations section of MoSys’ website at http://www.mosys.com.

About MoSys, Inc.

Founded in 1991, MoSys, Inc. (Nasdaq:MOSY), develops, licenses and
markets innovative memory technologies for semiconductors. MoSys’
patented 1T-SRAM technologies offer a combination of high density, low
power consumption, high speed and low cost unmatched by other
available memory technologies. The single transistor bit cell used in
1T-SRAM memory results in the technology achieving much higher density
than traditional six transistor SRAMs while using the same standard
logic manufacturing processes. 1T-SRAM technologies also offer the
familiar, refresh-free interface and high performance for random
address access cycles associated with traditional SRAMs. In addition,
these technologies can reduce operating power consumption by a factor
of four compared with traditional SRAM technology, contributing to
making them ideal for embedding large memories in System on Chip (SoC)
designs. MoSys’ licensees have shipped more than 98 million chips
incorporating 1T-SRAM embedded memory technologies, demonstrating
excellent manufacturability in a wide range of silicon processes and
applications. MoSys is headquartered at 755 N. Mathilda Avenue,
Sunnyvale, California 94085. More information is available on MoSys’
website at http://www.mosys.com.

Forward-Looking Statements

This press release may contain forward-looking statements about
MoSys, (“the Company”) including, without limitation, benefits and
performance expected from use of the Company’s 1T-SRAM technology.

Forward-looking statements are based on certain assumptions and
expectations of future events that are subject to risks and
uncertainties. Actual results and trends may differ materially from
historical results or those projected in any such forward-looking
statements depending on a variety of factors. These factors include
but are not limited to, customer acceptance of our 1T-SRAM
technologies, the timing and nature of signing license agreements with
our customers and their requests for our services under existing
license agreements, the timing of customer acceptance of our work
under such agreements, the level of commercial success of licensees’
products such as cell phone hand sets, ease of manufacturing and
yields of devices incorporating our 1T-SRAM, our ability to enhance
the 1T-SRAM technology or develop new technologies, the level of
intellectual property protection provided by our patents, the vigor
and growth of markets served by our licensees and customers and
operations of the Company and other risks identified in the Company’s
most recent annual report on Form 10-K filed with the Securities and
Exchange Commission, as well as other reports that the Company files
from time to time with the Securities and Exchange Commission. The
Company undertakes no obligation to update publicly any
forward-looking statement for any reason, except as required by law,
even as new information becomes available or other events occur in the
future.

1T-SRAM(R) is a MoSys trademark registered in the U.S. Patent and
Trademark Office. All other trade, product, or service names
referenced in this release may be trademarks or registered trademarks
of their respective holders.

CONTACT: MoSys, Sunnyvale
James R. Pekarsky, 408-731-1800
or
Shelton Group Investor Relations
Kellie Nugent, 972-239-5119 x125
knugent@sheltongroup.com

SOURCE: MoSys, Inc.